Michaela
Ripple Labs Inc., a blockchain-focused fintech firm, has announced that it is applying for a U.S. banking license, positioning itself for potential compliance as lawmakers advance legislation to bring stablecoin issuers under federal oversight. The move mirrors a similar step recently taken by Circle Internet Financial.
Ripple is seeking a banking license from the U.S. Office of the Comptroller of the Currency (OCC), CEO Brad Garlinghouse confirmed in a July 2 post on X. Garlinghouse stated that, if approved, the license would place Ripple under both state and federal oversight, a move he described as a “new benchmark for trust in the stablecoin market.”
“While Congress is working towards clear rules and regulations, and banks (in a far cry from the years of Operation Chokepoint 2.0) are leaning in, this access would allow us to hold $RLUSD reserves directly with the Fed and provide an additional layer of security to future proof trust in RLUSD,” Garlinghouse wrote.
Ripple’s decision to pursue a banking license comes on the heels of Circle’s application to the OCC to establish a national trust bank responsible for managing its stablecoin reserves.
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Jeremy Allaire, Circle’s co-founder, chairman, and CEO, characterized the company’s effort to establish a national digital currency trust bank as a significant milestone in advancing a more transparent, inclusive, and digitally native financial system.
The latest developments from both firms come just over two weeks after the U.S. Senate passed the GENIUS Act, a bill aimed at regulating stablecoins by establishing clear standards for issuing U.S. dollar-pegged tokens. Ripple and Circle each offer such assets: RLUSD and USDC, respectively.
“Ripple always has and will continue to build trusted, battle-tested and secure infrastructure,” Garlinghouse wrote. “In a $250B+ market, RLUSD stands out for putting regulation first, setting the standard that institutions expect,” he added.
As competition in the stablecoin space intensifies, industry players are positioning themselves for a future defined by tighter oversight and institutional demand. How companies adapt to evolving regulatory expectations may determine not just market share, but long-term relevance in a rapidly transforming global financial ecosystem.
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Following the announcement, the price of XRP, the digital asset developed by Ripple, stood at $2.28 at the time of writing, representing a 3.88% increase over the past 24 hours, according to data from CoinMarketCap.
Read More
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- Judge Rejects Ripple, SEC Deal to Slash $125M XRP Penalty
- Circle’s Jeremy Allaire Says Stablecoins Near Breakout Moment
MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
